After finalizing the share exchange with Dell, Michael Dell announced his plans to take the company public.
Henry wholeheartedly supported this decision, believing that going public would accelerate Dell's growth, which would also benefit his interests. To assist Dell, Henry's companies would promote it, with Michael Dell and Geely Hutt discussing specifics.
Afterwards, Henry reached out to Netscape, requesting them to develop a feature he highly valued—multi-tab browsing!
The Netscape browser was to support multiple tabs, allowing users to open multiple websites efficiently without navigating through their taskbars, making it considerably more convenient.
Henry's request was received positively by Netscape, prompting them to move forward with development.
"When AOL and Apple release the AL browser, ensure that this new feature is implemented!" Henry directed.
"Understood! This is a great feature that will give us an edge against the AL browser!" Netscape CEO Jonathan Jackson replied with a laugh.
Once the Netscape browser incorporated a bookmarking function, multi-tab browsing, and rapid webpage loading technology—reducing the response time from the original three seconds to just one second—Netscape would present formidable challenges to the AL browser's market presence.
"While developing new technologies and functions, don't forget to register for patents. Even after the AL browser is launched, we must ensure they comply with our patents!" Henry urged.
"Chairman, we understand, and you can count on us!" Jonathan Jackson assured him.
Henry nodded, knowing that he placed high importance on patents. The entire company was aware that whenever they developed new technology or features, patent registration was non-negotiable!
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On March 15, 1988, AOL and Apple launched the AL browser. Despite its superficial alterations, the AL browser was widely regarded as a direct copy of the Netscape browser.
Henry acted swiftly, instructing Netscape to sue AOL and Apple for infringement.
Steve Case, ever the expert in avoidance, submitted a hefty pile of technical documents and evidence in hopes of proving that AOL had not plagiarized. The court was bound to spend considerable time sifting through these documents! Regardless, the case seemed like an open-and-shut victory for Netscape; the company was also well-prepared, having sent ten technicians and five lawyers determined to win the case expeditiously.
Simultaneously, the Netscape browser underwent an update. Not only did its response speed improve dramatically, but the new features of bookmarks and multi-tab browsing garnered significant approval from users.
In contrast, the AL browser faced intense backlash from users. Despite the joint promotional efforts from AOL and Apple, the browser was not well-received, prompting many to uninstall it.
Apple's sales plummeted after they replaced the Netscape browser with the AL browser.
With a growing number of users accessing the Internet, it became apparent that without a competitive browser, sales of Apple computers would suffer.
Apple's troubles compounded!
A few days later, Microsoft released its latest operating system, Windows 2.3, which bore a striking resemblance to Apple's system interface. By learning from Apple's example and implementing the best aspects of its design, the new Windows system quickly gained popularity and began squeezing Apple's market share even further. Apple's performance suffered, and stock prices continued to tumble.
Scully and Apple, seeing the threat posed by Microsoft's new operating system, regretted their earlier decision to allow Microsoft to incorporate aspects of their system interface. They brazenly filed a lawsuit against Microsoft, claiming infringement of their patents!
However, this lawsuit was virtually futile. Microsoft held a contract affirming its rights, rendering Apple's claims weak. The move appeared more as a public relations campaign, an attempt to project the image that Apple's operating system was superior and that Microsoft's Windows 2.3 was a mere knockoff. However, this strategy failed to alter Apple's circumstances.
Upon launching the AL browser, AOL introduced a newly developed email service as part of the product. Much like the AL browser, this email was hardly utilized. It was evident that AOL had fast-tracked their graphical email interface, neglecting to circumvent Global Online's email patents!
Henry wasted no time in directing Global Online to sue AOL for infringement!
Since its inception, Global Online had succeeded in putting AOL on the defensive! Given the similarities in their names and their ongoing rivalry, the media delighted in covering their battles.
Once Global Online took AOL to court, news outlets began reporting on the story with enthusiasm!
"Global Online Sues AOL for Infringement of Graphical Email Interface Patent!"
"'Global' Takes a Stand Against 'America' Again!"
"AOL—A Disgrace to the U.S.—Robbers and Thieves, Committed to Infringing on Other Companies' Patents!"
With two lawsuits piling up against AOL, the company quickly garnered a reputation for misconduct.
The AL browser, in and of itself, was an inferior product. Comparing it with the Netscape browser was like comparing heaven and earth. AOL's reputation suffered as they appeared unable to produce a product of even an adequate standard.
Apple's relationship with AOL was strained, as daily complaints from frustrated Apple users poured in, resulting in many requesting refunds. This represented the largest return surge Apple had ever seen, with hundreds of customers arriving each day seeking to return their purchases.
Apple activists took to vandalizing Apple products in frustration, publicly expressing their disappointment.
While Apple faced dire circumstances, the contract with AOL mandated that Apple hold on to its 20% stake in the AL browser, preventing them from retreating from the situation without consequence. Consequently, Apple was unable to escape the turmoil caused by their deal.
Unable to "steal the chicken," Apple's stock plummeted from $55 per share to $35!
In a desperate attempt to salvage the situation, an Apple employee suggested to Scully, "Given user demand for the Netscape browser, and recognizing our contractual obligations, why not simply install both browsers? Our agreement with AOL obligates us to promote their browser, but it does not prevent us from including other companies' browsers."
Scully's eyes lit up at this idea. "That's a valid approach!" he concluded.
"Alright, let's go ahead with that plan!" Scully instructed.
This strategy could potentially appease disgruntled Apple users.
Shortly after, Scully informed Steve Case of Apple's decision.
Steve erupted with anger upon hearing the news. However, he quickly recognized that losing his temper would achieve nothing. Rather than react impulsively, Steve retreated to his office for a night of contemplation. The following day, he gathered his team and disclosed Apple's decision, detailing the current challenges facing the company, and invited input on possible solutions.
Frustration filled the room as the team vented their anger at Apple's betrayal. Some executives suggested legal action against Apple for breach of contract!
Steve Case promptly dismissed these notions.
AOL depended on its collaboration with Apple to remain competitive against the Nicholas Group. He understood the importance of patience and humor in navigating this situation; fueling internal conflict would only detract from their mission.
Despite a slew of ideas circulating during that meeting, none proved particularly promising.
Seated in his chair, Steve absorbed the discussions without expressing his true thoughts. Once the chatter subsided, he asserted, "AOL is fundamentally positioned as an online service platform. Admittedly, we rushed our browser launch, which has led to its current issues! However, if we remain committed, I believe we will find success with the AL browser one day!!!"
Steve Case's words invigorated the team, renewing their spirits, and soon applause filled the room.
"Exactly! We will rise again, AOL!!!"
Enhancing their morale, Steve's conviction inspired heightened enthusiasm from everyone present.
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As AOL faced internal turmoil coupled with external challenges, they made an unexpected acquisition: a New York financial newspaper. Many questioned whether this move represented a lapse in judgment, wondering how a company embroiled in legal battles could justify such a purchase.
Henry found himself equally perplexed by AOL's latest strategy.
However, answers were soon revealed.
On April 1, AOL hosted a press conference announcing its partnership with Sequoia Capital to establish the "American Finance Network," touted as the most authoritative and comprehensive online information service in financial matters.
Immediately after the announcement, AOL's business began to thrive!
Henry was stunned, realizing that perhaps AOL wasn't down for the count just yet.